The tax relief or deduction on contributions to a pension plan are what we commonly know as the reductions in the taxable income base for Personal Income Tax purposes, which results in savings that will depend on the marginal rate of each customer. Starting in 2022, contributions made to pension plans can be deducted from the taxable base for personal income tax (IRPF) for an amount up to 1,500 euros, limited to 30% of the net income derived from work and other economic activities. The percentage that the retirement plan deducts depends on your marginal rate of Personal Income Tax.
Calculate how much income tax relief you can claim on your pension plan contributions
Is it possible to recoup your money before retirement?
Yes, Law 26/2014 allows contributions to pension plans that were made at least 10 years earlier (from 2015) to be redeemed. This means that, if you opened a plan in 2015, starting in 2025 you would be able to redeem what you contributed in 2015, in 2026 what you contributed in 2016, and so on.
There are other specific circumstances in which you can also redeem the investment before retirement: in cases of unemployment, disability, dependency or severe illness, among others. Ask us about the best way of doing it.
What is the maximum amount you can contribute each year to a pension plan?
If you want to know the maximum amount you can contribute to a pension plan in one year, this article here has all the information you need.